Winning the digital game

with a human touch

Did you know that a human

touch is essential to deliver
a truly holistic customer
experience even to the
digital customer? To win
over the digital customer,
merely being digital is not
enough. Companies need
to purposefully weave
in human interactions at
touchpoints that digital
cannot address effectively.
For companies in todays digital
India looking to extend their
market reach, digital innovations
have proved to be a game
changer. For consumers too,
digital channels have delivered
price advantage, convenience
and access across the purchase
journey. In fact, digital has
disrupted the linear purchase
journey and created new-age
consumers who expect a higher
level of customer service on

demandanytime, anywhere
delivered via channels of
their choice.
This scenario presents a challenge
for todays companies. Customer
service expectations are not only
increasing, but also becoming
more complex at every stage of
the purchase journey. They want
faster and more personalized
services. They want a human
touch that can personalize the
access and convenience that
digital channels provide.
The rising expectations and
access to more choices is making
consumers switch service
providers frequently.
Accentures 2015 Global Consumer
Pulse Research estimates the
switching economy at US$6
trillion globally and India accounts
for a sizeable share at US$412
billion. Eighty-eight percent of
Indian consumers have switched
service providers in at least one
industry due to poor customer
service in 2015 (see Figure 1. The

Switching Economy). Moreover,

75 percent of consumers who
switched and were looking for
a new provider cited customer
service as the main factor that
would drive their choice of the
new provider. This trend is evident
across industries in India, and was
especially relevant for the service
industry. In fact, the switching
behavior was the highest for
Internet service providers,
retailers and banks (see Figure
2. The Reasons for Customer
Dissatisfaction). A deep dive into
the various industries covered
in the survey indicates that
almost 40 percent of consumers
in the banking, Internet service
providers, and consumer goods
and retail industries found the
differentiation in company
offers to be limited. As many
as 55 percent of the consumers
in these industries admitted to
shopping elsewhere for better
deals, indicating a clear gap in the
customer experience.

Figure 1. The Switching Economy

88%

of Indian consumers have switched service

providers in at least one industry

This trend is most visible for Internet service providers,

retailers and banks

41%

37%

37%
Banks

Cable television
service providers

29%

Wireless
companies

28%

Home telephone
service providers

23%

20%

20%

17%

13%

Internet service
providers

Healthcare providers

Retailers

Airlines

Hotels

36%

Insurance
providers

Utilities

The numbers are percentage of respondents in India who have switched service providers.
Source for all charts: Global Consumer Pulse Survey, 2015, Accenture.
Accenture surveyed 24,489 end consumers in 33 different countries through the Internet between August 18 and September 30, 2015.
Respondents were asked to evaluate 11 industry sectors (up to four industries per respondent). This report provides insights into the changing
consumer behavior, attitudes and expectations impacting companies customer strategies across digital and analog channels.
The research focused on country-specific findings of consumer behaviors and perceptions with respect to marketing and sales practices,
customer service in terms of changing expectations and digital, social media and mobility adoption and its impact, and how customer dynamics
have evolved and their attitudes towards price, human versus digital interaction and circular/sharing economy.

Figure 2. The Reasons for Customer Dissatisfaction

61%

of consumers who switched cited overall quality

of customer experience as the main reason.

Consumers who feel

all providers are the same

Consumers who are shopping

for a better deal

Overall

Overall

INDIA 39

GLOBAL 33

INDIA 55

GLOBAL 52

Consumer goods retailers

27%

57%
64%

36%

Retail banking
35%
39%

36%
50%

Wireless service providers

34%
39%

The Omnichannel
Consumer
To meet the demands of this newage consumer, companies need
to transform their go-to-market
strategy to not only be present
across all channels, but also offer
a blend of physical and digital
interface that offers an improved
consumer experience across each
stage of the purchase journey.
4

Accentures research reveals that

consumers digital usage varies
across stages of the purchase
journey. A significant proportion
(59 percent) use these channels to
learn about products and services
(see Figure 3. The Channel Mix)
and an even larger majority of
consumers (67 percent) use
online or digital channels to
make their purchases.

21%
51%

However, for post-purchase and

most importantly, for resolving
customer service issues, only 34
percent first turn to online support
provided by the company.
In the race to adopt digital
channels such as mobile, Web
and social media, companies have
lost sight of the effectiveness of
physical channels for consumers.
Some of the digital customer

service channels deployed, such as

IVR (interactive voice response),
online text and online information
from third-party sources scored

the lowest in customer satisfaction

compared to other channels of
complaint resolution. In contrast,
in-store and at-home customer

services top the customer service

satisfaction chart.

Figure 3. The Channel Mix

Consumers are using a mix of both digital and
physical channels for their interactions
23% Expert review sites
12% Word of mouth
12% Social media sites
12% Advertising on traditional channels

Awareness1

11% In-store referral

10% Online reviews from other users
9% Corporate websites
4% Telemarketing
4% Online ads
40% Company website
20% Company store
27% Third-party website
8% Third-party retailer

Purchase2

3% Call center
34% Online support provided by company

14% In-store support

17% Online information from third party
9% At-home repair
Customer
service3

10% Help desk

1% Self-service through IVR
11% Online text/video chat

Digital channels
Traditional channels

1. Figures are percentage of respondents (550 online consumers) who opt for these
channels for primary information.
2. Figures are percentage of respondents (550 online consumers) who opt for these
channels for purchase.
3. Figures are percentage of respondents (550 online consumers) who opt for these
channels first for customer service and support.

The Human Touch

To match these consumer
expectations, companies need
to find the right mix in their
omnichannel strategy. It is not
enough to be present and offer
services through all digital and
physical channels, but companies
also need to identify how to
blend in the human interface at
particular touchpoints to offer an
enhanced consumer experience.
Globally, 73 percent of consumers
prefer human interaction for
solving service issues, for advice
and for resolving complaints about
products and services. These trends
are mirrored in India too (see Figure
4. The Demand for Personalization).
The demand for human touch is
clear in the fact that a significant
majority (64 percent) is willing

to pay a higher price for human

interaction whether face to face,
Web chats or on phone. Also, while
55 percent prefer dealing with
humans to get quick answers to
questions, 59 percent prefer human
interactions to resolve complaints
about service issues.
Sixty-seven percent of consumers
cited ability to see, touch, try and
compare products as the reason
for using an in-store human
interface. The human factor
figured in customer retention too
with 54 percent saying they would
have not switched if the service
provider had provided better live or
in-person customer service.
Even for consumers in the banking,
Internet service providers, and
consumer goods and retail
industries, the human element

appears to be a differentiator.
Consumers across these three
industries rated their satisfaction
from use of physical channels
higher than online or digital
channels. In fact, almost 20 percent
more consumers in these three
industries preferred to use in-store
or physical locations for
their purchase.
What these trends point to is the
need for companies to find the
right balance, and invest in an
omnichannel consumer experience
instead of relying too heavily on
pure digital interactions.

Figure 4. The Demand for Personalization

Consumers are ready and willing to embrace the
human element in their purchase journey

64%

are ready to pay a higher price for

access to in-person interactions

65%

might not have switched if

provided live or in-person
customer service

70%

are satisfied with repair service

provided at home

...But have higher expectations from such human

interactions

53%

have higher expectations from

service provided when human
interaction is involved

48%

have higher expectations from

information and advice provided
when human interaction
is involved

Human interactions via video chat, phone or in a physical store.

Figures include respondents who have voted 1 to 5 on a scale of 1 to 10.

The Road to Reclaim Customer Experience

Companies that are looking to
build on the potential of each
channel to provide intelligent
consumer service, need to keep in
mind that one size does not fit all
digital customers. These customers
seek different levels of digitalphysical balance. Service providers
need to keep two critical factors in
mind. First, companies must devise
the right omnichannel strategy
for a seamless, connected and
consistent customer experience
across myriad channels. Second,
they must leverage the human
interaction to upsell and cross-sell,
and offer personalized services.

Strike an onlineoffline balance

Embracing digital does not mean
ignoring traditional channels.
Indeed, being omnichannel is
about ensuring a consistency in
consumers experience, message
and content across assorted
channels, both digital and
traditional. Consumers support
this omnichannel balance with
52 percent willing to work with
companies across digital and
physical channels as long as
they are well aligned. In fact,
our research also shows that
consumers who interact with the
company across multiple channels
are more profitable.

Mix and match:

Companies need to increasingly

work toward using online and
offline channels in new ways. They
can install in-store technology
to enable consumers to browse
catalogues, find alternative offers
and place orders. Stores could be
used as a display site with home-

delivery options, or the other way

roundas a collection point for
online and mobile orders. These
outlets can also be used as an
experience place to build loyalty.
For instance, the Tata group in
India has launched TataCLiQ.
coman amalgam of physical
and digital (phygital) e-commerce
marketplace. It is a platform where
shoppers can order, collect, return
and exchange products from
anywhere, anytime, either online or
at brand partners stores.1
Internationally, take the case of
Bonobos, one of the leading online
brands in mens apparel in the
United States. They have many
experiential physical stores all
across the country. These stores
stock just one sample of all styles,
all colors and all sizes. This gives
them a chance to showcase their
entire collection in a limited
space. A customer walks in, likes
a particular style and tries a size
in that style. If he likes the fit,
he looks for a color he wants.
Next, an order is placed online
for that particular style-colorsize combination and the product
reaches him within 24 hours
straight from the warehouse.2

Get real: Companies need

to put the human and physical

elements back into customer
services with a focus on delivering
better experiences. Aware of
this need, several e-commerce
companies are opening physical
stores to give customers a touchand-feel experience of products
and stand out in the clutter of the
increasingly crowded online
retail space.

Zivame, Pepperfry, FirstCry and

Lenskart have started offline
experience zones to differentiate
their offerings from those of their
online rivals and to increase their
credibility.3 Meanwhile, other
digital leaders have come up
with an assisted e-commerce
model. For instance, Indian
e-tailers Snapdeal and Flipkart
have physical stores that support
the customers digital purchase
journey. These offline stores
allow customers an opportunity
to touch and feel the products
and have the products features
explained and their queries
answered by the sales attendant.
Snapdeal is collaborating with The
Mobile Store (TMS) to add the
value of human interaction in the
customers purchase journey.4
Assisted e-commerce could also
help bridge the geographic gaps
in digital reach, especially in
rural areas. Digital payments firm
Payworld has launched Payworld
Bazaar to help rural and semiurban
consumers shop through an
assisted e-commerce model with
the help of a Payworld retailer.5
StoreKing, an assisted e-commerce
service provider, enables rural
retailers to sell more than 50,000
products to walk-in customers via
its digital kiosks. Operating on an
assisted e-commerce model, the
retail shop owner helps customers
use the mobile kiosk, select
products and make cash payment
to the retailer. StoreKing ships the
products to the retail store within
2448 hours. Users then can
collect their order from these
retail stores.6

Or take the case of Amazon India,

which is expanding its offline
presence and bringing on board
customers who are still reluctant
to shop online. The e-tailer has
tied up with Vodafone India, a
telecom operator, to provide a
touch and feel experience of
smartphones such as OnePlus 3,
which are sold exclusively on the
platform. As part of the tie-up,
each Vodafone store now has a
display case with mobile phones
listed on Amazon and a product
specialist trained by the e-tailer.
Customers can try out phones,
especially as several smartphones
are now exclusively launched and
sold on Amazon India without any
offline presence. Customers can
order the product online from the
store, and also come back for any
post-purchase help.7

Channeling superior
service: Striking a balance

approach to providing good service.

It has decided that it cannot
adequately provide a quick and
between online and offline is not
easy resolution on first contact
easy. In addition to the complexity via e-mail. So it does not offer
of operating across multiple
e-mail as a channel. Instead, it has
channels, companies need to ensure developed a robust self-service help
quality and responsive customer
center online, with easy access to
services. Sixty-six percent of the
a live person via chat or phone.
consumers surveyed indicated
The help page displays the current
an increase in their customer
availability and wait time for chat
service expectation from last year.
and phone, so that customers can
Interestingly, the customer service
choose either of the two channels.
expectations are even higher
It also generates a code that is
from human channels than they
entered prior to being connected
are from digital channels. Only 7
to the Netflix representative, so
percent of the consumers surveyed that the latter will be able to easily
cited lower customer service
access the customers personal
expectations from human channels. information for a seamless one
contact resolution.8
Netflix is an example of how a
company can take a more focused

Leverage the
right balance to
sell more and
offer personalized
services
Tap upsell and crosssell opportunities:

Companies that rely too heavily

on digital interactions might be
extending their reach, but they
could be losing out on upsell and
cross-sell opportunities due to
the lack of the human touch or
personalization efforts.

Our research shows that companies

that combine physical and instore experiences with digital
ones to create a holistic consumer
experience are more valued by
consumers. Consider these facts:

31 percent said they would

recommend their service providers
to others, if satisfied.
29 percent said they would buy
more products/services if satisfied
with their current service providers.

49 percent said they were more

Flipkart has recently announced
willing to be sold new or upgraded
its plan to cross-sell its commerce,
products when receiving a face-tosupply chain and advertising
face service rather than online.
services to its top-selling
51 percent said in-store service
merchants and deep-pocketed
was the best channel for getting a brands. The company also plans to
tailored experience.
monetize its registered customer
base of 75 million by selling to
67 percent said they preferred
these merchants and brands
the in-store channel as it allowed
insights into who and where the
them to touch and feel products.
top-paying customers are and
what kind of products they want.9

Figure 5. The Personal Connect

Well executed human customer service elements score
high on customer satisfaction

69%

Polite and friendly

employees

60%

Well-informed
employees

62%

Ensuring privacy of
information

54%

Access to customer
service on multiple
channels

Figures include respondents who voted Strongly agree and Agree

Figures include respondents who voted Strongly agree and Agree

10

Premiumization
through
personalization:
Companies should strive to create
a more personalized shopping
experiencesuch as access to
live person interactions via video
chat, phone or in a storeto drive
premiumization among their
offerings. Companies that get this
right could have up to 24 percent
of their consumers pay a premium
for their services. Pepperfry, an
Indian online furniture and home
products marketplace, launched

its B2C bespoke services initially,

and has now started offering
bespoke services to the B2B sector
as well. Extending to corporate
offices, hotels, schools and cafes,
the service forms a new revenue
stream for the company. Bespoke,
or made-to-order services,
involves a process of browsing and
choosing from curated designs,
followed by final execution. The
company has also posted design
consultants in four cities has made
virtual design consultants available
for customers outside these cities.10

Internationally, CIBC in Canada

launched a new digital advice
channel for its premium/wealthier
customers. Using the existing
platform, CIBC is allowing its mass
affluent client base to choose from
more than 60 remote financial
advisors who are available for
personalized consultation on
phone or through e-mail.11
Service providers that fail
to offer human-delivered
services and experiences to
consumers are willing to pay for
are ignoring a significant
revenue-generation opportunity.

Conclusion
Managing the changing expectation of the digital customer is all about sticking
to the good old principles of customer experience. The answer is not to move
to all things digital but to ensure a consistent, high-quality experience for
consumers across channels. Consumers are increasingly relying on the channels
of choice, be it digital or physical, and expect the best levels of service across
these channels. Companies must make the seamless omnichannel experience
easier for their consumers and position themselves to reap the rewards through
better upselling and cross-selling opportunities.

References
1

http://economictimes.indiatimes.com/
magazines/brand-equity/what-is-tatas-planto-stand-out-in-the-crowded-e-commercemart/articleshow/52747541.cms

http://knowledge.wharton.upenn.edu/article/
human-touch-matter-retail/

http://articles.economictimes.indiatimes.
com/2015-12-02/news/68717287_1_physicalstores-firstcry-com-lenskart
3

http://www.essar.com/article.aspx?cont_
id=uBPzi1lmXvE=
4

http://economictimes.indiatimes.com/
industry/services/retail/payworld-launchespayworld-bazaar-for-assisted-ecommerce/
articleshow/52536048.cms
5

http://economictimes.indiatimes.com/smallbiz/money/e-commerce-startup-storekingraises-16-million-from-axiata-digital/
articleshow/52655953.cms
http://economictimes.indiatimes.com/
industry/services/retail/amazon-ties-up-withvodafone-to-acquire-hesitant-customers/
articleshow/52825400.cms
https://hbr.org/2015/05/when-to-offerfewer-customer-service-channels
8

http://economictimes.indiatimes.
com/small-biz/startups/furnituremarketplace-pepperfrys-bespoke-divisionbranching-out-to-b2b-bespoke-services/
articleshow/53017394.cms
10

http://www.theglobeandmail.com/globeinvestor/funds-and-etfs/cibc-launchesdigital-advice-channel-for-wealthy-clients/
article27110910/
11

http://economictimes.indiatimes.
com/articleshow/52511706.cms?utm_
source=contentofinterest&utm_
medium=text&utm_campaign=cppst
9

11

Join the Conversation

@AccentureStrat
@AccentureIndia
AccentureIndia

Contact the Authors:

Sanjay Dawar
sanjay.dawar@accenture.com

Jayesh Pandey

jayesh.pandey@accenture.com

Dhruv Laroia
dhruv.laroia@accenture.com

Sharmila Saxena
sharmila.saxena@accenture.com

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